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COMMERCIAL PROPERTY | Staff Reporter, Philippines

OKP’s net profit skyrockets 175.7% to $7m in FY15

It bagged seven public sector projects during the year.

OKP Holdings posted an attributable profit of $7m in FY15, thanks to increased project margins over the year. This reflects a 175.7% surge from FY14’s $2.5m.

According to the company’s media release, the group won seven public sector projects with a combined worth of $301.1m.

OKP also saw an overall pullback in revenue on back of lower revenue contribution from its maintenance segment. The substantial completion of existing maintenance projects in FY15 led to the maintenance segment’s revenue to plunge 33% to $25.7m.

This was offset somewhat, however, by a 9.1% uptick to $77.6m in the construction segment’s revenue, which was driven by the progression of existing and new projects into a more active phase.

Gross profit for the year also showed a 57.2% surge to $13.8m, while gross profits margin rose 5.3 pp to 13.3%. This was due mainly to the completion of several maintenance projects which commanded higher margins, as well as the recognition of variation orders for a construction project.

Meanwhile, the company’s net construction order book stood at $344.8m, with projects extending until 2019.

Looking forward, the group is optimistic about its short- to medium-term prospects. However, OKP states it is cognisant of challenges from climbing operational costs and muted business landscape. It is therefore intent on boosting productivity and managing its balance sheet. OKP also asserts that it remains focused on both its core market of Singapore and possible overseas opportunities.

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